Today Tarek Fahim runs Endure Capital – a successful VC based in Palo Alto, California. He was also one of the early investors in the ride-hailing app Careem which recently got acquired by Uber.
Tarek was born and raised in Kuwait by Egyptian engineer parents. His parents set an example by helping others in the community.
This lesson in helping others towards fulfillment as a human being pushed him forward all throughout his life. This is why he created an NGO Alboraq while studying at the university as an engineer.
Later in his career, he always felt this itch for helping others more than just working as an engineer. This led him to study his MBA, then starting his own startup from scratch later helping other entrepreneurs as a VC.
Listen to the full episode for the hidden gems and once how he almost became a dentist 🙂
At the end of the day, we invest in people. Companies may succeed or fail. People are the right thing to “bet” on.
–Tarek Fahim
Show Notes
Endure Capital Website
www.endurecap.com
Interview transcript
Maruf: Hey, Assalamualaikum. This is Maruf. And welcome to the show Muslims on fire. Today, I have a special person. I have a brother and a friend from Egypt, Tarek Fahim. He is the co-founder of Endure Capital. You’ll know if you’re listening to this podcast.
I look at him as like, you know, my advisor and also one of the people I really inspired a lot. So brief story is that last year I think, somewhere in summer we met together and we were discussing this mess opportunity. But usually, you know, what really happened?
What until I do every day is that I was just keep noticing that I was cute and didn’t see you as different from the photo and then towards it? I keep asking that hey, what was this difference? And tells me that hey, that’s it.
I just started walking. He wasn’t even trying to he was like, you know for sweet and so this one idea I started walking and I walked every day since then. So this is one of the ways and one of the reasons that I get inspired by people, like tag this one of the reasons the podcast expect, you know exist, and I’m so honored to enlighten charge today. Assalamuwalaikum, Tarek Fahim and welcome to the show.
Tarek: Walaikumussalam. Thank you for having me.
Maruf: It’s a pleasure to have you. How are you? How are things?
Tarek: All are great, Alhamdulillah.
Maruf: So are you ready?
Tarek: Yep.
Maruf: Let’s do it. Okay. So Tarek, that we know you and your capital and your team is one of the successful team. You guys spotted and invested in many hundred like upcoming Star in the early stages, like some other meetings.
I think today we are now going back and you know, explore your childhood stories about your life story. And what makes you tick? So let’s start with that and then tell us what you think it made you who you are today based on yourself your childhood memories. How was a childhood for it like for Tarek Fahim? When you grow up? How was your family?
Tarek: Okay, I was the second child. Actually, I only had one brother.
Maruf: Okay.
Tarek: He died 10 years ago. He was older. So yeah, he was older than me by four years. We grew up together in Kuwait. I was born and raised in Kuwait, which basically a small country. Yet it was one of the most politically advanced countries back in the 70s and 80s. So I was really lucky to be there because there were a lot of cultural exposure in this Movies and Cinemas and events a lot of other things.
So for us, it was like a very nice and safe environment to grow up. I was nerd basically in physics. I loved both my mother and father and they both were electrical engineers. I had learned a lot from them both. Actually, at the same time, they had the willingness always to help and support other people around them either friends or friends of friends, just like to be surrounded by people, just like to be supporting those whose couldn’t find a job and getting them solving their problems. And tried to be there for them. And I think that’s what.
Maruf: Yeah, I mean like, I don’t know why you’re originally from Egypt, but you were born in Kuwait or you guys moved to Kuwait?
Tarek: No, I was born in Kuwait.
Maruf: Oh! You were born in Kuwait. I guess that both are the Muslim countries and both countries people speak Arabic.
But would you see any kind of difference like there was some? What I’m asking you is that like as I mean still your parents from Egypt. Did you see anything like some of the guess they say for example, they were born in the place. They can see all the difference, you know, they were different than other people. But if you see did you feel that kind of difference while you’re growing up in Kuwait?
Tarek: You know before the weather? Okay, I don’t. I had been to Kuwait before about you know, but the weather was different than any other place in the world for me and it’s really really hot. So that limited a lot of outdoor activities, especially in summer.
Yeah, but anyway, Kuwait was a very lovely country. The people were really welcoming and we had a lot of nationalities like it was not only the Quakers and Egyptians that we were Palestinians, Serians, Jordanians.
It may be that I was 11 and people were not really thinking that I was Egyptian because of my language. Actually my Arabic language got a completeness. It was Kuwait’s reintroduce. It was a mess.
Maruf: So you could not forget who you were?
Tarek: Yeah. It was really tough.
Maruf: Okay. I think you went also school that I guess right. So when you were studying, like School. And remember you said your parents were engineers. So, was that any kind of influence? Did it influence you in any way that were more inclined to engineering and in that sense or what did you like at school?
I am just curious. What subjects did you like at school?
Tarek: Physics and math. I really loved physics. Physics was one of my favorite subjects. Always, I had been lucky to have very good teachers who would actually did an extra effort to explain difficult things in a very simple terms of her mat trying to be as much as practical as they can with experimentations, and I love that.
Maruf: I see. Okay. So, I mean after school like when you were doing university studies, did you follow the same path like engineering and science or can you get your eyes like?
Tarek: Yeah. I tried to revolt in a way. So I joined the faculty of Dentistry. So I was going to become a dentist.
Maruf: Wait. Now, we have to explain. How honored that you study Physics, right?
Tarek:Yeah.
Maruf: And how honored that you became like going towards the dentist. Please explain that.
Tarek: I think I would deny – Nationwide then in high school diploma, which basically you get to choose any college or university that you want to join.
Maruf: Okay.
Tarek: I got even offers from Kuwait University to join with a monthly salary or compensation to join them.
Maruf: It’s constituents. I think.
Tarek: Yes,exactly. But actually I didn’t even thought about it’s offer. And I went back to Egypt. And I said like that here the thing. By the way, I was 16 years old when I got to college. So I was a little bit too young. Just wanted to say what could be the best way to make money without even having to study hard today.
You should join fucking through this because if you joined anything that you don’t really like you’ll have to study twice as hard because you are compensating for a lost passion.
Maruf: Oh, yeah! Absolutely. That’s one of the key points to us, right ?
Tarek: So just don’t follow the trails of the money. You will regret later. Yes, big time. So I joined for a couple of months later on I dropped and I decided to try to go back to my normal course and joined the faculty of engineering.
Maruf: I see. Imagine that you just follow that I mean today, I’m not sure. You’ll be talking today but probably will be miserable lying that dentistry job, wouldn’t you?
Tarek: Yeah. Most by without me having green heart pain in my leg because I was standing for a long time.
Maruf: That’s so interesting, right? And so I think that’s you know, what you just said. That’s very common among teenagers. I mean even my explains I was also going to be one of the most produced prestigious University Like Home Country.
But about a year to I figure out that’s not for me and I have to take a detour and in life. I think we just take detours and this detours kind of hopefully, you know, leave us, you know, guide us to the places we want to be. Okay, now back to the show, so you said enough is enough. I’m not with dentistry. I’m going to follow up engineering. You have a degree today, don’t you?
Tarek: Yes, I’m not doing it a lot. But yes, I have one.
Maruf: That’s good. But I’m gonna ask another question. How did you end up from engineering as you are today? So what’s the next position?
Tarek: Yes. it’s my degree later on I started working. But my first job was on a company headquartered in the Bay Area. I worked for the rear box office with a guy who happened to be the inventor of something called the SPG a field programmable which was a specific type of spicy chips that allows you to program near your whatever hardware design in real time in a check which basically don’t have to manufacture early honors implement pictures.
So this is the guy who invented that. Yeah. I’ve been lucky to work with him for a few years before his company went bankrupt it for several reasons. In that time, we were in haunted by IBM to start something called value in Egypt, which basically one of the biggest Automotive Auto Parts Supplier and the Autoport technology for life.
Maruf: So what year was it? What year are you talking about?
Tarek: That was late 2004 and 2005.
Maruf: Okay. This is when the IBM like it and you guys are you or your team and I know so to do this thing. So tell us more about this first.
Tarek:Yes. That basically was telling us to do to work as something called embedded software engineers. This was early on before the hive of autonomous driving and things like that. We had definitely a computer vision team but hard team that we worked in.
But that was primarily at the transition from purely mechanical parts to see my electronics. That’s my software components. You have something called X by wire which basically drive by wire breaks or by wire everything. So by wire means by electronic signals.
Maruf: I see. But this mainly towards at the electron like automobile electronics. Isn’t that correct?
Tarek: Yes and an airplanes as well.
Maruf: Airplanes, okay. So you wanted the guys making some of the software’s that had raised and embedded software as you mentioned for airplanes, right?
Tarek: But if you have French car from the year 2000 that’s 2006 to 2010 or 2011. Most probably I wrote some code on that.
Maruf: I think this is like a piece of art or citroen and those kind. That’s how I see. Okay. So you were working there and how did you find a job? Was it exciting for you? Or you were just you know doing the job because you had to.
Tarel: No, it was really exciting because for us. Because we were the first five guys who got reputed from IBF in Egypt. I think their biggest wire Into worldwide for software. So at that time, we were only five. It was a nice experience because it was almost like starting a start-up.
Maruf: Inside a big company.
Tarek: Exactly.
Maruf: It’s called intrapreneurship. Isn’t it like Nintendo interact is second sight that come? Tarek:Yeah.
Maruf: It’s cool.
Tarek: Yeah. It was almost like in job training for what’s coming next.
Marug: Yeah. So what was coming next?
Tarek: So what was coming like that I decided to get my MBA. I got a scholarship for my MBA at the American University in Cairo. After the first semester of hard like really smart people meeting with the wind up and our sponsor.
The guy who was actually paying for our scholarship. And when he asked them that guys, what were you going to do in your life later on most of them didn’t have a clear answer and even the guy who answered he said, like you were really kind to us by it supporting in the same way.
And it would be great if you could support us to start our own businesses and companies. So for me that was a shock. Because the guy already paid a lot. And people asking you to pay well over and people were just waiting to get some money to start coming for me that was shocking like we got.
Those guys were smart people and now they getting this business degree so why they were not starting their own things, why they were not building their own things. So I mean, I should just keep going.
Maruf: This pattern your life, you know, you keep kind of upgrade and leveling up. So I mean Engineer because from that you said, you know, I’m gonna go into business and business is different than engineering, right?
We got this. It is fully different things and especially NBA. What made you choose that path?
Tarek: So I do think so anyways, not really a degree to tell you the truth. Historically, people started having this kind of education as part of the Industrial Revolution to support mayden management who were primarily engineering who had more knowledge about business and management.
End of the day, you would never take those basics of accounting and a master degree in business. So it doesn’t make any sense. Like you can’t be if you don’t take 1 course and master degrees. Yeah. So primarily the MBA degree was not really a degree.
It’s more of something that primarily for originally directed for engineering medical school student or things like that to equip them with the right managerial and business skills. Yeah, it’s so well. So it just made them actually most of the guys who studied. They dealt with us where we were coming from engineering.
Maruf: I see that makes sense now. Okay, because it was like an edge video. That’s what should happen next. Because you were working at this company. You were probably made to senior engineer and that was your next step, right? That’s why these guys sponsored your MBA and that’s what you guys went for it.
Tarek: Not fully correct. Because they didn’t sponsor also my MBA. But the one who sponsored my MBA and he was a Lottif Jamil of Saudi Arabia. This was the one who sponsored my MBA. Yes. And actually I wasn’t in favor of me doing an MBA.
So, they said that I was a technical engineer and I should continue technical on that path. Because this is how I was outsourced to clients and definitely the managerial path was not suitable for me. So this one.
Maruf: That’s exactly what I’m asking. You still want that? I want to study MBA even though it doesn’t make sense to me.
Tarek: Yes.
Maduf: See, what did you think that decision? What was the thinking behind it?
Tarek: Don’t mind that. I just wanted to expand my Horizon and to do more things. At that time, when I was actually studying and college. I started something called Al Boracay Geo which basically circuit was an NGO to help and support Youth Development through engaging them in community work. Activities, like I said, let’s get you some students to help them and engage them.
And building an orphanage for example or fixing like every week like 1,000 or 2,000 meals for the free things like that. So I started when I was still a student and for me, I really enjoyed being part of this. Because it meant a lot that you could see the direct impact of what you were building.
You could see how you working with younger people full of energy, how you were the one who was trying to would other course to try to figure out the right systems on Earth. Procedures were not following a set pattern of rules, but actually you trying to make sure that you were optimizing.
Because you had very limited resources and you wanted to maximize the benefit that you were offering to people. So for me, it was quite exciting to have such an experience. So I said now I had this experience of building things inside the bigger company, which would happen for me and MBA and Benigno.
And I had this experience. So it’s the right time for me to try to study in a more formal way.
how things are getting done. How you can build things at the scale later on. So this is why I decided to go for my MBA which again wasn’t really welcomed by my management and peers and idea.
Mafuf: What’s over with understanding is like on the one hand. You will have full time for work. You would building this thing with IBM and inside the corporation, but you also mentioned the side you had this hobby or another exciting things since you were a student.
So get this I think might suit you mentioned. And they were doing like muted things and you were seeing the impact right away instead of a big corporation. And you’re thinking okay. I have experienced from the sales excused from the side.
Maybe now, I want to learn that time I was thinking I’m gonna want to finish up, I want to do VC. I want to do startups or what thoughts were your in mind? when you were studying at going for the same day?
Tarek: Yeah, so at the time of my MBA, I didn’t know what’s in this needs. But in my personal statement why I wanted to do my MBA that I got my scholarship out of it like achieve that. I got my scholarship based on that. I said, I wanted to build something that would help other people.
And other companies early on to grow their companies. So, I started describing the function of a VC. Yes. Which is very ironic and that’s exactly what I wanted to do. And I thought that definitely. Because for me that would be most worlds coming together.
It’s about conversions conversion. My NGO over activities with my technical and day-to-day job.
Maruf: I see. So, you finish your MBA and then what changed like at your work you still see yourself working there or like your priorities change? You want to see something after finishing it and what happened there?
Tarek: Actually, after In my first semester, I decided to quit my job. Because when I sold those smart people not taking any actions and just waiting for people to give them more money to start doing things like this different something wrong then here.
Why we should wait? Why should we start doing things? So at the very beginning when you don’t have enough money. And at that time, there’s nothing called VC’s here in the Middle East at that time or not at least widely known.
I decided that I should start doing my own business and you could not build at that tiny because you didn’t have enough assets or money. I couldn’t build a product. I started building some services. So I joined with another friend of mine and we built a software Service Company.
Early on that was a very small company. Overall the office was less than 60 meters square. We were actually six people in that office. Yeah, so it was little interesting days. And later on we got some luck and some traction for our software Services.
Maruf: What was it? What was the software about? What the software was doing?
Tarek: Basically, web-based application. That was rough. Yes. It’s what needed. We were willing to do it.
Maruf: So, what experience right is because your engineer? But still had X-rays and software Engineers. Well
Tarek: Yes, and my other friend had a very good experience in business. And we both were stood each other’s domain. So we were able to communicate and actually put something meaningful. After that, we gained some success.
We could get some money. Because he was coming from consulting background. We decided that white mall. We built a consulting practice. Actually, a business consulting practice with a very interesting angle that we know how to implement things.
Because at that time most of the consultants like the mackenzies and bosom. And the procedures would work basically would give you very high-level document, very fancy PowerPoints. Most probably you felt really good reading them.
Because quite complicated in a way, yet at the end of the day you end up with just like 80-page document. That’s it. So we didn’t.
Maruf: Actually store through meditation. Just a document were thing how things were, right?
Tarek: Yes, so we said that we were implementation guys. We already had software and my capabilities were in production cavities and house which might allow us to do a lot to make an automation. And maybe like decision-making simulators things like that.
So why didn’t we combine this capacity with our business knowledge to start a consulting practice? So yeah, we started that we got some people from again people who were just graduated from insead the graduated from Berkeley had some other prestigious universities.
And we build our own consulting practice. We started with like three people and then one year, I think it was around like 20. It was really a team of 20 persons. Mostly young people at that time. I think it was 27 or 28 years old at that time.
So I had several cards one of them saying that I was a partner. The other one saying I was a head of business development and a third sanctimony. I was a senior associate and I though a folder with no contact. For example the context and houma meetings.
I should give him the right cards and sometimes exactly actual muscle tone. It gets messy.
Maruf: I mean, so what you guys were different? I guess I’m trying to understand another like something firms that Mackenzie was that instead of telling hey, this is what we take blah blah. And here’s your ATP
page report.
What you guys do? It like you understand I guess the business say hey. What’s broken? Let us help you fix it. Is it because of correct? This have your different.
Tarek: In a way, we always said that we had this 80/20 which rule was basically we would give you and I would support you with the 20%. That would get you 80% of the value.
So the other 80% thing we would not charge you on that. We were not even work on that because it was not your priority. Make sure the stories were always called 80/20 %.
Maruf: Yes. I see that was your like unique selling point. It was your you know value that why people choose you over again Mackenzie. Probably, that’s good. So you were doing this but in the back of your head, you still had this big idea, but you knew you’d have money.
You had other things but you had to pass the steps. That’s why you were doing these things, right? Is this correct?
Tarek: Actually, I almost forgot the thing that they wanted to build at that time which basically helping other companies and on top of this to start the old things.
It was almost like an old dream that I had. And I just started building new things. I didn’t realize that all of that life. I’d be leaving me to actually towards the way of achieving my the things that I wanted to build early on. But at that time I was just focusing on getting things done.
I was just focusing on the sigma. I owned companies being successful as much as I could through them.
Maruf: Sure. So, tell us the progression. What happened?
But today you’re not doing that one. So, they must be transition period, right? So, do you guys sell it? Were you anxious or you were still involved in some?
Tarek: No, actually I grew this was become 30-plus person practice and we Included other things related to leadership development.
And because at the end of the day, we were going into our change management program with the bigger companies. You needed a lot of soft skills in a lot of culture change. So we started building this practice and understanding what’s needed to build such a thing.
Till I think 2010 when I decided that now it was the right time for me to sell. Whatever thing that I built take the money. And started doing something related technology and go back to my original roots.
Maruf: Yeah, original like the big grand dream, right? You wanted to help you. Okay. How did it work out for you?
Tarek: Tough, anyway. Because it wasn’t easy. It was really tough to sell a service business because at the end of the day if you didn’t have like an injection property yet, of course, you have very specific products of framework and things like that.
But it was really tough.
Maruf: It’s humans, right? It’s resources.
Tarek: Yeah, and if you were the one was at least you are one of the guys who built that and saying that I was going out and I wanted to sell fish.
You almost like as if you were taking some of the assets away from the company. But I managed to sell it. I got some cash. I think I got like eight X multiple on my original investment which wasn’t a lot. But again, it was a good return and I took some money and I started doing some investments were on with some of my previous clients.
And the consulting practice we would start to go investing together and we started building a few things together.
Maruf: But it was locally in Egypt. Is it correct?
Tarek: Yes. It was located in Egypt and that actually 2012, in that year, I got an invitation from something called IVLP, which basically stands for international visitor leadership program, which was like an exchange exchange program for Department of states where the choose what the perceived the Future Leaders of a specific country or specific region to come and get them and give them a tour and a visit for the United States to meet a lot of movers and shakers, the figures and top executives and CEOs of companies.
They were trying it in any way or another and to show you like.
Maruf: What you could be, right? How you could grow or like how to open the horizons as you said right, isn’t it?
Tarek: Yes, in a way and another way actually I was trying to make friendships with people who might be later on in a reading position of the country’s. So you should think about it.
It just makes sense because you would never go into big fights with people that you had already been connected for several years already. You had been to their homes. And you had talked about other things and he was connected and put them at the like so many levels not only like the business rather than political level just like be connected as human beings together.
So yeah, that helped me to see that there was another world in there. There’s something called startups very interesting. They were the BC practice at what’s happening and how it could be done? What kind of sure that we needed to have a place for that? So for me that was a little eye-opening.
And at that time, I was invited to an event in San Francisco where I met by coincidence. I met a guy who was very smart guy and I met by Quincy because he was giving a talk and actually I wasn’t intending to attend. I wasn’t planning to attend a stock.
But for some reason, he just came in and they closed the door. So. Yeah, but when we start talking said that my name is Jeff. The guy was called Jeff Aston. He said that he was Jeff and I built that rocket email and sold it to you. Now that’s Yahoo email. I had got this other company.
Maruf: He is the Jeff from YC company, right?
Tarek: Yes. That back in 2012. He had another accident. I think imagine cuticles or mentioned 12 something like that for me to focus on education. So yeah, and he said that I’ve done. I’ve invested in another company.
That was actually going down completely till I actually decided to give the CEO of that company managed to turn it around and later on two years later. I sold it to happen or that was called La La music and I said enough for me.
I could not do that anymore. It was really tough to build one company. So what about two companies so I decided to be an angel. Investor, I started sexier atypical development cables. And now I’m a part-time partner.
Another thing called y combinator. So he started talking about like luminator. So that’s looked a lot like the thing that I wanted to build a wrote about my personal statement in 2004.
So I got really excited that I went to Tom talked to him. And I said that I wanted to know more about YC. What’s happening? How you get all your building things? What’s a person or its procedures? So he gave the name of Jessica Langston who was the founder of that work.
He told me you should read more. You should read this book. It was really inspiring and it was keep in touch. Yeah, and this was actually when I decided that my next company that I was gonna invest then as an investor.
I would try my best to give them into y combinator. I wanted to see what would happen in their journey. And I wanted to be there for those things.
Maruf: I would say incubator rate like well, how would you describe Y combinator briefly to the audience with and who knows what I know.
Tarek: Yes. They were the guys who started the concept of accelerators. Basically it started with that. He said that companies now needed this money to start that originated because of the advanced and infrastructure and support and technology.
So whatever it was, you needed like one millionaire. Early on to start your company now, it was just like that. Maybe like 50k not only one million and he believed on technical founders.
If the technical people because all the founders were technical guys except maybe for Jessica. Yet, you know that technical people. If they were given the chances on the right support that would end up building different things because they had different points of view.
Because we all know that when it comes to business. Business just about non frameworks like whatever BCG Matrix whatever anything Like that the free value problem like very interesting jargons. Just too far. You could actually see it in a more similar format.
And should not be so many English. So for those guys, they said that we had jargons, we had technical people who could help them build their own things. Because if we had the right ability to do so, you would build up different things.
And they were right because those guys were the first money into Arabian into Dropbox had to and it was the car that do like any of the object name that you knew. Those guys were first spine of the first shake would support them every day off. Yeah.
Maruf: So I mean like a new capital. Was it the time that you establish a new capital right after you were around that time? I mean later you went to visit San Francisco or do some?
Tarek: You know two years later, because I went back and I started doing some investments and I ended up like one of my first investment that what the first company to join YC from the weather East that was in 2003
1 year after that time Y combinator was not that active in investing a companies outside of Silicon Valley outside of the US in general.
So that was the first company from the Middle East even including turkey to be part of how to take part in Y combinator. I had learnt a lot from them and I even made 60x multiple on my investment on that concrete which was not bad at all.
Because I made that 16th in one year. But with me here what happened this company actually was limping something was a message in space. If you remembered in 2014 another like not so big company decided to acquire WhatsApp, which basically can’t must have a home all of their messaging application.
Maruf: I think like Facebook which users are 13 billion.
Tarek: It’s 19.
Maruf: Wow! Million dollars that does look a little funny part. The guy went to apply for years earlier to Facebook. Didn’t take your mind? Did know the story?
Tarek: Yeah. A little bit more.
Maruf: Well, that’s good. So you thought you were saying that you were in the right position. Because it was a big elephant will come into the marketplace, right?
Tarek: Unfortunately, because their acquisition Whats App became more popular in the US. Reported that popular before the acquisition was popular elsewhere in Europe, Asia and other countries, of course.
But wasn’t that popular in the US. So other messaging applications were almost killed, instantly. Because it was done when you had a big one or two big exits and specific sector on a field on a specific product.
Usually most of the other products became up have a chance actually. Yeah to the media. So yeah, I lost all my paper gains almost 60 export certificates.
Maruf: Tarek, I want your insight on this what you just said because I won’t understand for myself and for people as well. So what you’re saying is that in any given Market when you see really wanted to big exits be talking one or two big maybe maximum three for the like coming, you know after that it will be very difficult to do traction.
Why is that?
Tarek: For a lot of things, one when you had this big exit that means that you already had a big company in a way or another. So this was B company. Definitely we were not big for no reason.
They were big because we had some sort of defense ability or modes where basically they had like network effects. We had grand effects. So it was really tough for other people to overcome capital as well. Yes, and now we have even more Firepower it’s because of the support of that choir because of supporters there this massive distribution did things like that.
Maruf: I see. Thank you for that clarification. Just so when you had the water too big exits for the rest of the guys would be like a hard battle sending her.
Tarek: Well, that’s big time again. There were some exceptions. But this was most of the time it was the case, I think.
Maruf: Thank you. So please go back to the story. So you were mentioning. So this is what happened even though you had a good return. But it was worthless because of this thing, right? And then?
Tarek: Yeah, but my really good return out with that would be learning part. So the guys went to YC and I wanted to visit them. I wasn’t allowed to go and be part of the team.
Because I wasn’t part of the team.
I was just there only an engine that time. But I was like waiting for them every day after they came back from their meeting and things like that. And I said like guys teach me. Please, tell me what you had learnt, what’s happening, what kind of discussion that you had, how did he hug you and things like that. So I almost attending YC with them.
Yeah, and until needed a lot of honor to understand. And to know what kind of support that we needed to give to our founders and entrepreneurs. So that was my biggest win. My second biggest win actually was after this company that the founder himself later on deciding to shut down the company.
And he decided to join another startups coming out here at that time and because we were really good friends. And had seen that we supported him in a way. He said this company wanted to grow later on to Egypt and he suggested that I should come and invest in the company that he just joined.
And he talked to the other guy saying that you should take Tarek’s money because he helped us a lot. And he definitely could help you in Egypt and that was really a good thing for all of us. Because that company was basically carried. Actually how I got it to carry.
Maruf: I see. So,then it was like 2013-14, I guess or?
Tarek: No. That was 2015. And that was 2015 base.
Maruf: So you were one of the very early investors.
Tarek: I was one of the early investors, but not the earliest. Even other counts actually who came before us.
Maruf: So, actually one of you had your set up guys, what you were saying is one of your guys? He could have failed because of what acquisition.
And he come back and do another set up in UAE and he could have say you like hey this guy so cool. You know, let’s get him. So what you were saying is that yeah. One thing is learning other thing is like connection. You’re building connections are startups and you are getting introduction.
And otherwise you wouldn’t even know that this you wouldn’t have this deal from Korea. Because this all dots are connected if you look back, right? Wouldn’t you say so?
Tarek: Yes, It’s definitely true and that’s not only connections and having relatively good reputation. Because the game was the day we invest in people like companies might like succeed or fails. But at the end of the day people were the details the right thing to Tibet.
Maruf: So after it, when you invest in Korean, that’s good. So that’s where runs like indoor comes into play like it’s a yes for sure. I see. Tarek: Yes, exactly. So I decided like now maybe it’s the right time for me to go from just investing into building funds. I had a previous experience of trying to build tons, but it didn’t go well.
That was like early on and then 2011, but I decided that I wanted to build it in a completely different way on a vented to have. I wanted to have quarter in the Palo Alto. And Silicon Valley were actually we invest in companies out of the US. I had at the same time. We invested in companies coming out from emerging markets trying to bridge the gap between the emerging markets in the US.
Because this was actually the most of the value could come in and strengthen the more connections that we had an amortizing. We had the better chances of success for both companies that we invested in our either in this part of the world or even in the US.
Maruf: I see I mean, where’s the end of your today like compared to when you launch it wears and you today so when?
Tarek: We launched it and it was a very small thing. We didn’t have enough money at that time.
We just had some equities in and relatively successful companies and we wanted to raise our first hunt. Because it was easy. I had to collect my font from 57 limited partners, which was in the word for investor. She was a lot very few farms actually had a large number of investors.
But I had to do so. Because most of the other typical LPS were focused on specific geography. Like the GFI is like IFC is epr. These were all those guys very beautiful guys yet. We put constraints on you and where you took all your money. So for us that was against our strategy our strategy was to be a cross-border investors.
Because this was where we believe. We were getting value and our seasons that the more freedom you had of the model created the higher degree of freedom you had in your investments and your choices. The better results you would end up with course.
If you were following your investment thesis and your strategy.
Maruf: So for those who may be literally new terms of the mood of you see. So the way I understand the Reese’s is peaceful my knowledge. So VC is entity who collects, you know, who gets money for a lesson from as you said LPS right there. The limited partners, they invest in the money to get a return at least 10.
Sometimes hundred in the next I don’t know, 10 years or something and people like yourself like the manage and deploy the money to invest in different companies. That’s pretty much, isn’t it?
Like the new despite describe the VCU wouldn’t you say so for those who don’t understand?
Tarek: Yeah, I agree. This is exactly like what you watch I said.
Maruf: I see. That’s something new for you as well, right? You take on a role, I guess before you were an angel now is much more structured. I guess. I mean one of the things you said to mention that I mean, this is one of the lessons I know maybe as I’m sure you have a lot of other ones.
I think about a year ago or maybe even later and I know when was the time that we were acquired Korean, right?
Tarek: Yes last year.
Maruf: I think you wanna go to general that one. Hopefully your LPS must be happy. So synthetic yesterday when I was, I guess announcing, you know, I was talking to Terry because you know, especially in our space talking to people like yourself getting your insides of a not quite often.
And I was with some people are asking a couple of questions and if you don’t mind I would like to ask them so you never have to be long replies. You can apply them as short as you can. So, let me get my promise. I’m going to ask I think I believe some of the questions are pretty good.
So one of the questions is that all the questions are good in general. Yeah. So I mean one of them is that you say is your view on impact investment. So what they’re saying? Is there some solutions that solve real problems in our societies? But may not be economically available. If you know, you’re looking to add always etc.
So what’s your experience with that and how do you look into this?
Tarek: So the good news for investing. It’s getting much better like that because what wasn’t viable early on. Now, it was becoming more violent because of the advances technology. This was one second consumers as specifically generation. See the love to be part of something meaningful and impactful. So what used to be not economically viable.
It is now economically viable in a way or another. Because some people, some users, some consumers only bought new things. Because we believed that they had a good impact on the environment that things I’d so. The good news was changing it. And I thought we were seeing a conversions between impact. And impact investing and typical investigating. This was for one side second for any business or for anything to sustained.
We needed to have the fundamental terms of sustainability, which basically, we needed to make sure that growing. And image we needed to make sure that were so soft. Cleaning for profit from a financial point of view.
So economic viability was an important thing. So you couldn’t have a thriving impact investing without that part yet. Sure the good news both were converging. We saw more of impact investing and to be more economical.
Maruf: I see. Thank you for your insight on that one. So another question we had that we think is that into capital is well known, but why process is not as well known brand as the South? What do you think that?
Tarek: Okay. So here’s the thing. We were not an accelerator or like an interview to recede like guys. This was the amount of money that we gave for that specific amount and we had for three months and things like that. It does work like that this way for us people reach out to us.
We started discussing their business opportunity. We got engaged with them. We were relatively known for making Asian fast. And every time it was different because not all companies were the same and all comes shouldn’t be the same. You wanted to invest in something that’s really different that had a different point of view that the different angle.
Maruf: And not all companies were investible. Right? Let’s put it this way as well. Yeah, I mean, so let me ask you this. So I mean, I agree with you. So you wanted to YC. This is how much with less success with a business process and compared to you. It’s different. I mean, but having said that but let me ask a question I guess so.
See anybody who’s listening? There’s I don’t know. Maybe they have something to say. Do you want to know? Help this is the think what investing tell us the ideal. I don’t want my idea. But tell us the ideal process for you to get Richard and what kind of stage they should reach out to you or what kind of stage they should? What would you like to see at the company would like to invest you follow? Please say.
Tarek: Yes. So basically we were in every decision. So whenever you thought you should be contacting us. You should go direct and contact us.
Don’t wait for a specific track. Sure, don’t wait for specific Milestones. Just contact us and if you don’t feel comfortable investing at that time or at that stage, we will tell you that on utility that quickly not to waste your time and not waste our time devour as well.
But it will be a very good thing for us because we will continue if you are convinced or maybe it’s just too early. We’ll continue our relations and connections. And when the time is right, we’ll definitely be one of your first investors and first backers. It’s because I have a lot of stories about things like that.
And even sometimes we invested in companies not only before having traction even before the incorporated like for example, there’s this company one of our dates and business called Maxup and how we invested in Maxup below.
The founder Max had used to be the city manager of Kareem and Alexandria and later on in Cairo. So I know him early on and before that two years earlier. I had met Travis of uber at a conference. And we had one hour chat about who Bertram’s X was even bigger than uber and wanting the elements and elements of successful were tracks.
So when I afflicted into that and say that if you want to build something like uber tracks in the Middle East this how it should be different. For example. It shouldn’t be something horizontally. It should be more of a vertical focused Uber tracks.
So when Belal came in and pitched his idea it almost set on my thesis about over tracks in a vertical which basically it’s over tracks a negative CG Market. I know him early on so we decided to let totally like to lead had his round even before incorporating.
Maruf: I see. So what you’re saying is of course about the people that also that idea and the timing,right?
Tarek: Timing is tightly coupled with the side of the market of the size of the anticipated market definitely entrepreneurs and founders comes first later on. It was the market and the opportunity and third would be the product. But for us the first two or more important even than the product. So you could come to us without a product.
But if you were like a good founder and you know how to get things done and you want to engage us early on as much as you and you were fine with that. Because we were builders and soaked with the things before. So we knew what did it take these little things.
Maduf: I see. This were my questions. Do you think a question I should ask that I didn’t ask? What you want to highlight?
Tarek: Nothing comes to mind, actually.
Maruf: Okay, that’s good. So this is the last question, I guess. Can you please mention those people can reach out to you or especially, you know contact India where they can go ahead and you can contact you guys?
Tarek: Yeah. Sure. You can contact me on my email. It’s my initials with the tf at indure caf.com.
Maruf: Thank you very much, Assalamuwalaikum.
Tarek: Walaikumassalam.
